Goodyear Tire & Rubber (GT) Names Joe Hinrichs Chairman, Is The Stock Still Undervalued?
Goodyear Tire & Rubber (GT) just made a leadership change that matters for anyone watching the stock. The board elected Joe Hinrichs as chairman, with shares edging 0.2% higher in after-hours trading.
For context, Goodyear Tire & Rubber shares have fallen 48.9% on a year to date share price basis and the 1 year total shareholder return is down 32%. The recent 1 day share price gain of 1.6% around the chairman announcement looks more like a brief sentiment shift than a clear change in longer term momentum, which has been fading over the past three and five years.
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Goodyear Tire & Rubber now trades well below both analyst targets and one intrinsic value estimate, even after the chairman bump. The gap is wide. Does that represent mispricing or a fair reflection of the risks ahead?
Most Popular Narrative: 57% Undervalued
Against a last close of $4.56, the most followed narrative on Goodyear Tire & Rubber pegs fair value at $10.50. This frames today’s pricing as heavily discounted and highly sensitive to any operational repair.
Goodyear does not have a shortage of assets. It has a return problem on a large part of them.
The same debt that makes GT dangerous also makes the common move very quickly if the operating business improves.
See why 4 investors see Goodyear Tire & Rubber as 57% undervalued.
Result: Fair Value of $10.50 (UNDERVALUED)
Still, Goodyear Tire & Rubber carries heavy net debt and recently reported a sizeable net loss. As a result, any setback in the repair story could quickly pressure equity.
Find out about the key risks to this Goodyear Tire & Rubber narrative.
Next Steps
Mixed signals around Goodyear Tire & Rubber can make the story feel uncertain. Consider acting promptly, reviewing the full picture, and weighing both sides with 3 key rewards and 1 important warning sign
Looking for more investment ideas beyond Goodyear Tire & Rubber?
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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